Source · Select Committees · Public Accounts Committee

Recommendation 16

16 Accepted

Department lacks analysis on local authorities not adopting Community Infrastructure Levy

Recommendation
The Department explained that, in 2019, it had helped LPAs by removing pooling restrictions that prevented them from using Section 106 and CIL monies together for local infrastructure.22 We asked whether the Department was aware of areas that would benefit from introducing the CIL but had not yet done so. It replied that it had not carried out such analysis, but that it could potentially be useful to better understand local authorities’ reasons for not introducing the CIL.23 21 Q 22 22 Q 24 23 Qq 28–29 11 2 Stewardship of the system Local planning authority capacity and capability
Government Response Summary
The government agrees to work more proactively with the Planning Advisory Service to identify LPAs where CIL ought to be viable and encourage wider take-up of the CIL where this is appropriate, with a target implementation date of Autumn 2026. They will continue ongoing work with PAS to consider ways in which it can support local authorities make best use of the tools available to them, including CIL, and to support the implementation of the government’s planning reforms.
Government Response Accepted
HM Government Accepted
3. PAC conclusion: There are additional local planning authorities for whom starting to operate the Community Infrastructure Levy would be both feasible and beneficial. 3. PAC recommendation: The Department should work more proactively with the Planning Advisory Service, to identify LPAs where CIL ought to be viable and encourage wider take-up of the CIL where this is appropriate. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2026 3.2 The Community Infrastructure Levy (CIL) is a discretionary levy, which LPAs may choose to adopt based on a range of local factors. This includes giving consideration to ensuring various forms of development remain viable in local areas, where economic factors will differ across different localities. Over half of LPAs already have a CIL in place, and the department expects that more areas will consider adopting CIL following Royal Assent to the English Devolution and Community Empowerment Bill. This Bill will give all Mayoral Strategic Authorities the power to raise a Mayoral CIL, subject to having a Spatial Development Strategy in place. 3.3 The department supports LPA capacity and capability through the PAS and through the provision of funding, including providing direct support for administration of local development contributions processes. The department will continue ongoing work with PAS to consider ways in which it can support local authorities make best use of the tools available to them, including CIL, and to support the implementation of the government’s planning reforms.